Traditional models for acquisition, use, and payment of software require a customer to pay for an expected number, or instances, of a software product that is intended to operate on the customer's computer network or system. For example, a customer desiring to provide a word processing software product for use by the customer's employees will generally pay for one copy of the software product for each of the customer's employees that will use the software product. Such payment may give the customer a license to use the software product at each of the employee work stations. The license typically prohibits copying and further distribution of the software product to other employees of the customer. The customer, moreover, pays a full price for each license thus obtained.
However, some or all of the customer's employees may use the software product only on a part-time basis. Thus, the customer in effect pays for excess capacity to ensure all of the customer's desired employees have access to the software product. As an alternative, the customer could acquire a limited number of software product licenses. In this alternate arrangement, some customer employees may not be able to use the software product when needed or desired, thereby reducing the work output of the customer.
Finally, the customer's hardware needs may change rapidly. Acquisition or disposal of hardware may affect the number of software licenses the customer needs to have in place. By having to separately purchase additional licenses of the software product, the customer may experience delays before the newly acquired hardware is fully functional.